Corrupt Official Pension Forfeiture Bill Enacted in
NJ

March 23, 2007 (PLANSPONSOR.com) - New Jersey
governor Jon Corzine signed into law last week a bill
imposing mandatory imprisonment and forfeiture of pensions
and retirement benefits for public officials or employees
convicted of certain crimes.

In a statement, the legislature said the
bill
enables the board of trustees of a state or local pension
fund to order forfeiture of “earned service
credit” in cases of misconduct for which no court
ordered forfeiture, as well as to implement any pension
forfeiture ordered by a court. The bill lists 19 offenses
for which mandatory forfeiture is required, including
theft by extortion, bribery, money laundering, and
perjury.

The legislation, which takes effect proactively 30
days after it was enacted, provides that the forfeiture
will be ordered by the court immediately upon a finding
of guilt against an individual. However, the court can
order the forfeiture be delayed pending a merit hearing
if good cause is shown.